Schedule 38-UT: Schedule 38-UT - Calculation of Interest on Underpayment or Late Payment of Estimated Income Tax (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
North Dakota Schedule 38-UT calculates interest on underpaid or late estimated income tax payments for estates and trusts for 2024. It shows required quarterly payments, underpayments, and interest due, and is attached to Form 38.
Who files this form
A fiduciary for an estate or trust may use Schedule 38-UT to check whether enough North Dakota estimated income tax was paid on time and to calculate interest on underpayments or late payments.
For tax year 2024:
- Do not complete this schedule unless the estate or trust was required to pay estimated federal income tax. See 2024 Federal Form 2210 to determine whether that requirement applies.
- Do not file this schedule if 2024 net tax liability minus 2024 withholding, shown on line 4, is less than $1,000.
- Do not file this schedule if the 2023 net tax liability entered on line 5 is less than $1,000. Enter zero on line 5 if no 2023 return was required.
When it's due
The schedule lists these estimated payment due dates for tax year 2024 calendar-year filers:
- 1st quarter: April 15, 2024.
- 2nd quarter: June 15, 2024.
- 3rd quarter: September 15, 2024.
- 4th quarter: January 15, 2025.
Fiscal-year filers should substitute corresponding dates.
For the 2024 federal 4th quarter exception, the fiduciary must not have been required to make the January 15, 2025 federal estimated payment because the 2024 federal return was filed and the remaining federal income tax was paid by February 1, 2025.
Interest on underpaid or late 2024 estimated tax accrues until the earlier of April 15, 2025, or the date the estimated tax due is paid in full.
What you'll need
Have these items available:
- The estate’s or trust’s name and FEIN as shown on Form 38.
- 2024 Form 38 for net tax liability and withholding.
- 2023 Form 38 for prior-year net tax liability and any overpayment applied to 2024 estimated tax.
- Estimated tax payment amounts and dates, plus withholding amounts.
- 2024 Federal Form 2210 to check the federal estimated tax requirement.
Additional attachments may be needed:
- For the federal annualized income installment method exception, attach the federal worksheet from 2024 Form 2210 and a worksheet showing the North Dakota calculations.
- For the partial-year exception, attach a statement describing the situation.
- If interest is calculated separately, attach a worksheet showing that calculation.
How to file
Attach Schedule 38-UT to Form 38. If a Part 1 exception applies, fill in the applicable circle and complete Parts 2 and 3 as instructed.
Enter total interest from Schedule 38-UT, line 17, on Form 38, line 17. Include any required supporting worksheets or statements.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Skipping the instructions. The form says to read them before completing the schedule.
- Using the regular installment calculation when an exception applies. Check the line 7 instructions before completing the rest of the form.
- Including withholding from nonresident beneficiaries on line 8. Do not include the amount from Form 38, page 1, line 5.
- Completing lines 9 through 15 across all quarters at once. Complete those lines for one quarter before moving to the next.
- Putting a prior-year overpayment in the wrong quarter. An overpayment from 2023 applied to 2024 estimated tax goes in the 1st quarter unless a statement attached to the 2023 return requested another quarter.
Questions people ask
What interest rate applies?
Interest is charged at 12% per year on underpaid or late estimated tax.
How is withholding divided among quarters?
Unless it can be shown otherwise, one-fourth of the total withholding is treated as withheld by each payment due date.
What exceptions does the schedule list?
Part 1 lists the qualified farmer exception, federal annualized income installment method exception, federal 4th quarter exception, and partial-year exception. Each has specific conditions in the instructions.
How does the interest affect my refund or balance due?
If Form 38 shows an overpayment on page 1, line 11, the interest reduces the refund. If Form 38 shows tax due on page 1, line 14, include the interest in the balance paid with the return. If Form 38 shows neither an overpayment nor tax due, interest of $5.00 or more must be included in the balance due and paid by check or money order submitted with the return.